Economics
Kenya’s Credit Slowdown to Curb Growth Next Year, IMF Says
- Credit extension slowed for 14th consecutive month in Sept.
- Kenyan government expects economy to grow 6% next year
In August, President Uhuru Kenyatta signed a law that capped banks’ loan charges at four percentage points above the benchmark central bank rate, which is currently 10 percent.
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Slowing credit growth in Kenya, where a government cap on loan rates has yet to boost lending, will probably act as a drag on the country’s economic expansion next year, the International Monetary Fund said.
Lending to the private sector slowed for the 14th consecutive month in September, central bank data published this week show. In August, President Uhuru Kenyatta signed a law that capped banks’ loan charges at four percentage points above the benchmark central bank rate, which is currently 10 percent.